South Carolina's duplexes and fourplexes sit in Columbia near USC and Fort Jackson, in Greenville and Spartanburg, and along the coast from Charleston to Myrtle Beach. A DSCR loan qualifies them on combined rent, but South Carolina taxes rentals differently from primary homes.
In short: You can finance a South Carolina duplex, triplex or fourplex with a LendingStreet DSCR loan, sized on the building's combined rent. Leverage reaches 80% LTV on a purchase and 75% on a cash-out refinance, the minimum credit score is 620, the standard minimum DSCR is 1.0x and no tax returns are required. In South Carolina, the 6% assessment ratio on rentals is the item that most often surprises new investors, followed by coastal insurance.
South Carolina has added population quickly, and rental demand has followed into Columbia, the Upstate and the coast. Duplexes and fourplexes serve students, military households at Fort Jackson and Shaw Air Force Base, and workers in manufacturing and health care.
Prices in the Upstate and Midlands are moderate, so many duplexes cover their payment at standard leverage. Charleston and the coast are pricier, and coastal insurance adds cost. The tax treatment is the bigger issue statewide: rentals are taxed at a higher assessment ratio than primary homes, so the seller's bill can be well below what you will pay.
Columbia's demand is anchored by the University of South Carolina, state government and Fort Jackson, the Army's largest basic training installation. In the Upstate, manufacturing employers along the I-85 corridor have pulled renters into Greenville, Spartanburg and Anderson.
Small multifamily appears in every South Carolina metro, but coastal and inland markets price very differently.
| Area | Typical 2-4 unit stock | What to watch |
|---|---|---|
| Columbia | Duplexes near USC and Fort Jackson | Moderate prices; student turnover |
| Greenville and Spartanburg | Older duplexes and newer infill | Fast-growing Upstate demand |
| Charleston and North Charleston | Converted houses and duplexes | High prices; wind and flood coverage |
| Myrtle Beach and the Grand Strand | Duplexes and small buildings near the coast | Wind coverage; seasonal workforce |
| Rock Hill and Summerville | Suburban duplexes near Charlotte and Charleston | Newer stock; HOAs on some |
A DSCR loan ignores your personal income and looks at the building. The combined rent of all units, from leases or the appraisal's rent schedule, is divided by the monthly payment including taxes, insurance and dues. Standard programs want 1.0x or better; sub-1.0 programs are available for some buildings.
Leverage tops out at 80% LTV on a purchase and 75% on a cash-out refinance, with rate-and-term up to 80% on some programs. The minimum credit score is 620, loans start at $150,000, 30-year terms are available and LLC ownership is standard. Our investor loans are business-purpose loans on non-owner-occupied property, so the borrower does not occupy any unit.
South Carolina assesses a primary residence at a 4% assessment ratio, but rentals and other property at a 6% assessment ratio, and rentals also pay school operating millage that primary homes are exempt from. The practical result is that an investor's tax bill can be far higher than an owner-occupant seller's. Ask the county for the bill as a rental.
Counties reassess on a five-year cycle with limits on increases, but a sale can trigger a new value. The state and counties charge a deed recording fee on transfers, customarily paid by the seller. Coastal properties face wind and flood insurance costs that can change the ratio substantially.
On a purchase, the county will usually reassess the property at its sale price, so the bill you inherit may change the following year. Use the purchase price and the 6% assessment ratio to estimate taxes.
This example is illustrative and not a quote. An investor buys a duplex in Columbia for $290,000 with 20% down, so the loan is $232,000. The two units rent for $1,250, $1,250 a month, $2,500 in total. Taxes and insurance run about $460 a month.
On a 30-year amortization, estimated principal and interest is about $1,622, for a total payment of about $2,082. Dividing $2,500 of rent by that payment gives a DSCR of about 1.20x, above the 1.0x standard minimum. The tax line reflects the 6% assessment ratio for rentals. Using an owner-occupant seller's bill could understate taxes by a wide margin.
| Item | Amount |
|---|---|
| Purchase price | $290,000 |
| Loan at 80% LTV | $232,000 |
| Down payment | $58,000 |
| Combined rent (2 units) | $2,500 a month |
| Estimated principal and interest | About $1,622 |
| Taxes and insurance | $460 |
| Total monthly payment | About $2,082 |
| DSCR | About 1.20x |
South Carolina's Residential Landlord and Tenant Act sets deposit, notice and repair rules statewide, and the state has no rent control. Some cities run rental business license or inspection programs, so check with the city.
On the coast, ask about elevation, flood zone and wind mitigation features. On newer suburban duplexes, check HOA covenants for leasing restrictions.
In Greenville and Spartanburg, many newer duplexes were built as two attached townhomes on separate lots. Those may be financed as two single-unit loans rather than one duplex, so check the plat.
Each added unit spreads the price and fixed costs across more rent, which usually helps coverage, but it also adds turnover, repairs and management. A duplex is easiest to resell to a wide pool of buyers; a fourplex often has the strongest ratio. Buildings of 5 to 8 units can still use residential DSCR programs, though max LTV varies by program; see our South Carolina 5-8 unit page. Nine or more units is commercial and covered on our multifamily pages.
Many investors buy a tired building with short-term rehab financing, lease the units and then refinance into a long-term DSCR loan. Cash-out tops out at 75% LTV and rate-and-term at up to 80% on some programs, and how long you must own the property before a cash-out varies by program.
Have these ready and you can request terms with confidence.
Rentals are assessed at a 6% assessment ratio instead of 4% for a legal residence, and they pay school operating millage. Ask the county for the bill as a rental.
No. Duplexes and fourplexes follow the state landlord-tenant act.
No. LLCs are standard, and many investors hold each building in its own entity. Expect to sign for the loan personally as well, and to provide the entity documents.
Purchases go up to 80% LTV, so at least 20% down, with loans from $150,000. A low DSCR or high taxes can require more, and you will also need funds for closing costs and reserves.
Yes. Prices and insurance are higher on the coast, so a larger down payment may be needed to reach 1.0x.
Yes. It qualifies on combined rent. Check whether it is one parcel or two attached townhomes.
No. DSCR loans qualify on the property's rent, with no W-2s, pay stubs or tax returns. Credit, reserves and the property itself are what underwriting reviews.
Some programs allow it, usually with stronger credit or more reserves. Putting more down is the other common fix, since it lowers the payment the rent has to cover.
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